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Agreement and Plan of Reorganization

 

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Title:

Agreement and Plan of Reorganization

Entities:

MTN Holdings Inc

Date:

2001

Size:

Preview shows 9KB of 95KB total

Price:

$45

ID:

#1461142

 

 

► Plans ► Agreements ► Agreements & Plans of Reorganization

 

 

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                      AGREEMENT AND PLAN OF REORGANIZATION

------------------------------------

THIS AGREEMENT AND PLAN OF REORGANIZATION (this "Agreement"), is made
this 9th day of August, 2001, by and among MTN Holdings, Inc., a publicly-held,
fully reporting corporation incorporated in Nevada ("MTN"), AGIL, Inc, a
Delaware corporation ("AGIL"), and the persons listed in Exhibit A hereof who
are the owners of record of all of the issued and outstanding shares of AGIL who
will execute and deliver this Agreement (the "AGIL Stockholders") based on the
following:

RECITALS

MTN wishes to acquire all of the issued and outstanding shares of
common stock, par value, $0.01 per share of AGIL (the "AGIL Common Stock"), in
exchange for the common stock, par value $0.001 per share (the "MTN Common
Stock") of MTN, in a transaction intended to qualify as a tax-free exchange
pursuant to section 368(a)(1)(B) of the Internal Revenue Code of 1986, as
amended. The parties intend for this Agreement to represent the terms and
conditions of such tax-free reorganization, which Agreement the parties hereby
adopt. However, neither party is seeking tax counsel or legal or accounting
opinions on whether the transaction qualifies for tax free treatment.

AGREEMENT

Based on the stated premises, which are incorporated herein by
reference, and for and in consideration of the mutual covenants and agreements
hereinafter set forth, the mutual benefits to the parties to be derived
herefrom, and other good and valuable consideration, the receipt and legal
adequacy of which are hereby acknowledged, it is hereby agreed as follows:

ARTICLE I

EXCHANGE OF STOCK

1.01 Exchange of Shares. On the terms and subject to the conditions
set forth in this Agreement, on the Closing Date (as defined in Section 1.05
hereof), the AGIL Stockholders shall assign, transfer, and deliver to MTN, free
and clear of all liens, pledges, encumbrances, charges, restrictions, or claims
of any kind, nature, or description, all of the issued and outstanding shares of
AGIL Common Stock (the "AGIL Shares") held by AGIL Stockholders which represent
all of the outstanding shares of AGIL Common Stock, and MTN agrees to acquire
the AGIL Shares on such date by issuing and delivering in exchange therefor an
aggregate of 10,707,000 restricted shares (the "Shares") of MTN Common Stock.
The Shares shall be issued pro rata based on the number of AGIL Shares held and
as set forth opposite such AGIL Stockholder's respective name in Exhibit A-1.
The Shares shall be appropriately adjusted to take into account any stock split,
stock dividend, reverse stock split, recapitalization, or similar change in the
MTN Common Stock which may occur between the date of the execution of this
Agreement and the Closing Date.

(a) Additional Shares. On the Closing Date, there shall also
be issued: 300,000 shares of MTN Common Stock to Capital
Holdings, LLC ("Capital Holdings")
<PAGE>

and 250,000 shares of MTN Common Stock to Pacific Management
Services, Inc. ("Pacific Management"), all of which shall
carry rights of registration, requiring MTN or its successor
to file with the SEC a registration statement to register the
resale of said shares, no later than February 20, 2002,
pursuant to that certain Registration Rights Agreement dated
as of the date hereof by and among MTN, Capital Holdings and
Pacific Management (the "Registration Rights Agreement").

1.02 Delivery of Stock Certificates by AGIL Stockholders. The transfer
of the AGIL Shares by the AGIL Stockholders shall be effected by the delivery to
MTN at the Closing (set forth in Section 1.05 hereof) of certificates
representing the AGIL Shares endorsed in blank or accompanied by stock powers
executed in blank, with all signatures medallion guaranteed and with all
necessary transfer taxes and other revenue stamps affixed and acquired at the
AGIL Stockholders' expense.

1.03 Operation as Wholly-Owned Subsidiary. After giving effect to the
transaction contemplated hereby, MTN will own all of the issued and outstanding
shares of AGIL Common Stock and AGIL will be a wholly-owned subsidiary of MTN
operating under the name AGIL, Inc. or such other name selected by the
stockholders and management of AGIL.

1.04 Further Assurances. At the Closing and from time to time
thereafter, the AGIL Stockholders shall execute such additional instruments and
take such other action as MTN may reasonably request, without undue cost to the
AGIL Stockholders in order to more effectively sell, transfer, and assign clear
title and ownership in the AGIL Shares to MTN .

1.05 Closing and Parties. The Closing contemplated hereby shall be held
at a mutually agreed upon time and place on or before July 27, 2001, or on
another date to be agreed to in writing by the parties (the "Closing Date").
This Agreement may be consummated at any time following approval by a majority
of the shareholders of MTN Common Stock as set forth in Section 4.01 hereof and
the AGIL Stockholders as set forth in Section 5.01. The Closing may be
accomplished by wire, express mail, overnight courier, conference telephone call
or as otherwise agreed to by the respective parties or their duly authorized
representatives.

1.06 Closing Events.
--------------

(a) MTN Deliveries. Subject to fulfillment or waiver of the
conditions set forth in Article IV, MTN shall deliver to AGIL at
Closing all the following:

(i) A certificate of good standing from the
Department of Commerce of the State of Nevada, issued as of a
date within ten days prior to the Closing Date, certifying
that MTN is in good standing as a corporation in the State of
Nevada;

(ii) Incumbency and specimen signature certificates
dated the Closing Date with respect to the officers of MTN
executing this Agreement and any other document delivered
pursuant hereto on behalf of MTN ;

2
<PAGE>

(iii) Copies of the resolutions/consents of MTN's
board of directors and shareholder minutes or consents
authorizing the execution and performance of this Agreement
and the contemplated transactions, certified by the secretary
or an assistant secretary of MTN as of the Closing Date;

(iv) The certificate contemplated by Section 4.02,
duly executed by the chief executive officer of MTN;

(v) The certificate contemplated by Section 4.03,
dated the Closing Date, signed by the chief executive officer
of MTN; and

(vii) Certificates representing 10,707,000 shares of
MTN Common Stock in the names of the AGIL Stockholders and in
the amounts set forth in Exhibit "B"; and

In addition to the above deliveries, MTN shall take all steps and
actions as AGIL and AGIL Stockholders may reasonably request or as may
otherwise be reasonably necessary to consummate the transactions
contemplated hereby.


 

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